Analyst Joao Soares from Citi maintained a Buy rating on Mercadolibre (MELI – Research Report) and keeping the price target at $3,000.00.
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Joao Soares has given his Buy rating due to a combination of factors that highlight Mercadolibre’s financial health and potential for growth. One of the key reasons is the improvement in the credit quality of Mercado Pago’s FIDC portfolio, particularly in Brazil. The decline in delinquency rates, specifically those over 90 days, indicates better credit management and a healthier financial position.
Moreover, the expected share price return of 24.8% suggests a promising upside for investors. This potential for significant returns, coupled with the consistent improvement in non-performing loans, supports the Buy recommendation. These elements together reflect a positive outlook for Mercadolibre, making it an attractive investment opportunity according to Joao Soares.
In another report released on June 17, Morgan Stanley also maintained a Buy rating on the stock with a $2,850.00 price target.
MELI’s price has also changed dramatically for the past six months – from $1729.850 to $2452.890, which is a 41.80% increase.